NU Online News Service, Oct. 30, 12:17 p.m.EDT

Willis Group Holdings Chief Executive Officer Joe Plumerireiterated his position that his firm will not take contingentcommissions, even if a five-year-old agreement banning them islifted.

In a speech before the Executives' Club Of Chicago this week,insurance broker Willis' chairman and CEO said corporate Americatoday needs to embrace a new commitment to transparency and riskmanagement to restore trust in business and the U.S. economy.

He observed that opinion surveys show Americans now have lessfaith in business to do the right thing than after the Enronscandal or the dot-com bust. Mr. Plumeri said he urged businessleaders to reject the opaque transactions and "lip service"transparency of the past, in favor of a new commitment toaccountability and openness.

"True transparency means being up-front with our variousstakeholders--whether they're shareholders, clients, partners,employees or the communities in which we do business--andexplaining what's in it for them and what's in it for us. It meanseducating them in a clear and straightforward way about the risksand opportunities so they can make informed decisions based ontheir best interests," Mr. Plumeri said.

To restore trust, he called on businesses to:

o Create a real contract with customers and address conflicts ofinterest in the way they do business.

o Elevate risk awareness at the senior executive and boardlevels and embrace comprehensive Enterprise Risk Management.

o Voluntarily disclose the risks they face and their levels ofinsurance coverage.

o Do a better job of explaining to the American people thepositive role of business in society and the economy.

He said senior executives and board members need to take abroader, more comprehensive view of risk than they do today.Companies need to hire chief risk officers and establish riskcommittees on their boards and demand true enterprise riskmanagement.

"The fact is that the risks of doing business areincreasing--and they'll continue to increase," he said.

Businesses must manage conflicts of interest transparently andresolve them in the interests of their customers, he said, notingthe controversy around insurers paying contingent commissions tobrokers.

"Many in our industry believe that simply telling clients thatthey are taking contingents makes it ok. I disagree," Mr. Plumerisaid. "With contingents, telling your clients you take them doesnot resolve the conflict.

"In my own business, a time could soon come when Willis and itsbig-three competitors will be allowed to take contingentcommissions again. One big insurance broker has already been giventhe green light by the insurance regulator here in Illinois to dojust that. And New York-regulated brokers may be able to do so aswell," he told the audience.

Mr. Plumeri remarked, "We've already decided at Willis thatwe're not going to go back to the old ways--we're looking to thefuture and we will continue to put in place the measures that willenhance trust and transparency, not undermine it. It may mean thatWillis will be the only company not taking contingentcommissions--but that's ok with me."